Mobile Commerce in Malaysia Projected to Reach US$1.08 Billion in 2015

KUALA LUMPUR, June 14 (Bernama) -- The mobile commerce in Malaysia is expected to grow more than seven times to reach RM3.43 billion (US$1.08 billion) in 2015, translating to 60 per cent of the online shopping market, says PayPal South-East Asia and India Managing Director, Elias Ghanem. "Last year, the country's mobile commerce market saw a phenomenal growth to RM467 million (US$146.5 million), compared with RM101 million (US$31.69 million) in 2010. "The increase was driven by higher penetration of smartphones and tablets, as well as the change in consumer behaviours," he told a media briefing on the company's Online and Mobile Shopping Insights 2011 on Thursday. He said 29 per cent of smartphone users go online before purchasing items to do a comparison of the product information. "Meanwhile, mobile shoppers constituted close to half of all online shoppers last year, compared with about 22 per cent in 2010, with an increased median spending of RM500 (US$156.89) in 2011 from RM387 (US$121.43) in 2010," he said. Ghanem said according to the study, Malaysians spent RM337 million (US$105.74 million) through their smartphones last year against RM108 million (US$33.89 million) via tablets, however the latter segment was building up as well. PayPal Mobile Asia Pacific Director Rahul Shinghal said retailers must seize the opportunity in mobile commerce, which has become mainstream with rising number of mobile shoppers to 650,000 last year from 250,000 in 2010. "Retailers with an online presence must also enhance their mobile payment system site, because the lack of it would cost a lot of traffic dropout," he said. -- BERNAMA